Tuesday, May 31, 2016

Stock Market Beta

Stock Market

Stock Market


A beta of greater than 1 indicates that the security 's price will be more volatile than the market. For example, if a stock 's beta is 1.2, it 's theoretically 20 more .In finance, the beta of an investment indicates whether the investment is more or less volatile In the U.S., published betas typically use a stock market index such as the S P 500 as a benchmark. The S P 500 is a popular index of U.S .Roughly speaking, a security with a beta of 1.5, will have move, on average, 1.5 times the market return. [More precisely, that stock 's excess return over and .A beta of less than 1 means that the investment will be less volatile than the market. For example, if a stock 's beta is 1.3, then theoretically it 's .



In finance, the beta of an investment indicates whether the investment is more or less volatile A stock whose returns vary less than the market 's returns has a beta with an absolute value l .A beta of greater than 1 indicates that the security 's price will be more volatile than the market. For example, if a stock 's beta is 1.2, it 's theoretically 20 more . A beta of less than 1 means that the investment will be less volatile than the market. For example, if a stock 's beta is 1.3, then theoretically it 's .The concept of beta is fairly simple; it 's a measure of individual stock risk relative to the overall risk of the stock market. It 's sometimes referred to as financial .


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